1099 Contract

[Lisamgnyabinghi]

What is the name of your state? Georgia

I am a small business owner of an llc. I signed a 1099 contract with a private company. Should I use my business EIN to get paid from them or my personal ssn. I am a counselor and I will be taking on clients as a counselor from them.

 

[FlyingRon]

You use the tax ID associated with the entity that they are paying. If they are paying you personally, you use your SSN.
If they are paying your LLC, then you should use whatever corresponds to that (which could be your SSN or an EIN).

Note, that corproations/LLC's rarely need 1099's for payments. There's no such thing as a "1099 contract."

 

[Lisamgnyabinghi]

Thank you. Let me be more clear. They offered me a job as a contractor as a counselor. I just did not know if when I submit my paperwork, if I should use my ssn as a personal contractor or if I should register with them under my LLC. My LLC is as a counseling business

 

[adjusterjack]

They offered me a job as a contractor as a counselor

Now you are getting into a gray area as to whether your status on that job is that of an employee or independent contractor.

What are your duties? How will you be paid? Do you invoice your client for the time spent with their clients? Or do they pay you by the hour? How much control do they exert over your activities? Are you still able to provide counseling services to your own clients? Do you have a written contract?

You still have to be aware of the difference between employee and independent contractor even though you have an LLC for your counseling business.

PS: Do you have professional liability insurance?

 

[Lisamgnyabinghi]

Now you are getting into a gray area as to whether your status on that job is that of an employee or independent contractor.

What are your duties? How will you be paid? Do you invoice your client for the time spent with their clients? Or do they pay you by the hour? How much control do they exert over your activities? Are you still able to provide counseling services to your own clients? Do you have a written contract?

You still have to be aware of the difference between employee and independent contractor even though you have an LLC for your counseling business.

PS: Do you have professional liability insurance?

I get paid by the hour and the company I am contracted with bills insurance and Medicaid. I do have professional liability insurance.

 

[LdiJ]

What is the name of your state? Georgia

I am a small business owner of an llc. I signed a 1099 contract with a private company. Should I use my business EIN to get paid from them or my personal ssn. I am a counselor and I will be taking on clients as a counselor from them.

If you are operating the counseling business under your LLC, then you should use the EIN number for your LLC.

 

[Lisamgnyabinghi]

Thank you but that was not the question. My question pertained to if I should sign up as a contractor using my ein, since I am a counselor or should I use my ssn

 

[LdiJ]

Thank you but that was not the question. My question pertained to if I should sign up as a contractor using my ein, since I am a counselor or should I use my ssn

You stated that you have an LLC. If you are doing the counseling work under your LLC then you should use the EIN number of your LLC. If you are doing the counseling work separately from your LLC, then you should use your SSN. In other words, it depends on how you intend to operate.

 

[Lisamgnyabinghi]

OK, so basically, it will be a personal decision? The company that hired me as a contractor do not have a preference. Since my LLC is a counseling business, that is why I thought I should use my EIN but the clients are clients of their business. I am their contractor.

 

[bcr229]

Not legal advice... after 30 years of working in commercial and government IT I've noticed that it's only recently that companies and government agencies have taken stronger measures to ensure that personally identifiable information (PII) is protected from unauthorized disclosure. Once your information is put into this agency's vendor database you don't know who will get access to it, and your SSN should be given to as few entities as possible. So, if you have the option of using your LLC with its EIN and there's no good reason for you to do the work as a sole proprietor/IC using your own SSN versus doing the work under your LLC, then run it through your LLC.

 

[Taxing Matters]

If it is a single member LLC then you may use either your name and SSN or the LLC name and the EIN. It really makes no difference since as far as the IRS is concerned a single member LLC is ignored and the business is treated as though it was a sole proprietorship owned directly by you anyway.

 

[PayrollHRGuy]

You signed a contract with them. In the contract did they name you or the LLC?

 

[LdiJ]

OK, so basically, it will be a personal decision? The company that hired me as a contractor do not have a preference. Since my LLC is a counseling business, that is why I thought I should use my EIN but the clients are clients of their business. I am their contractor.

That doesn't make any difference. Just because you are a contractor for those clients doesn't mean that you cannot do it under your LLC.